Source - http://www.marketwatch.com/
By - Carla Mozee
Category - Attractions In New Orleans
Posted By - Homewood Suites New Orleans
By - Carla Mozee
Category - Attractions In New Orleans
Posted By - Homewood Suites New Orleans
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Attractions In New Orleans |
Crude for July delivery CLN3 -0.30% fell 16 cents, or 0.2%, to $91.81 a
barrel, with some pressure on the dollar-denominated commodity coming
from strengthening U.S. dollar.
The ICE dollar index DXY -0.11% , which measures the greenback against
six other global currencies, rose to 83.237 from 82.294 on Friday. The
index finished May higher by nearly 2%.
On Monday, the final version of HSBC’s China manufacturing Purchasing
Managers’ Index showed activity in the sector contracted in May. The
index fell to 49.2 from a preliminary reading of 49.6. The latest
reading was also more than a point off from April’s 50.4. A result below
50 signals contraction.
China is a key consumer of oil, and the reported contraction in the
country’s manufacturing sector came at a time of general concern about a
slowdown in China and its impact on energy demand.
HSBC’s report contrasted with China’s official PMI, released Saturday, which rose to 50.8 in May from 50.6 in April.
Monday’s slip in oil prices added to the 1.8% drop on Friday, when news
about record-high European unemployment and a decline in U.S. consumer
spending in April dented energy-demand prospects.
The oil market later Monday is due to receive May PMI reports for Germany, France, Italy, and the overall euro zone.
Ahead of the reports, European Central Bank President Mario Draghi said
Monday that the euro area’s economic situation “remains challenging,”
and the ECB doesn’t expect much of an improvement before the end of this
year.
The ECB on Thursday is expected to yet again downwardly revise its
economic-activity forecast for this year. It currently expects a
contraction of 0.5%.
But industry and investor worries about lackluster energy demand didn’t
sway OPEC on Friday from sticking to its current oil-production target.
OPEC oil ministers at a summit in Vienna agreed, as expected, to keep
the output target at 30 million barrels a day for the rest of the year,
with many members expressing satisfaction with current price levels of
about $100 a barrel for Brent crude.
But OPEC’s current target “has no teeth because there are no individual
country allocations within the quota,” Simmons & Company
International head of research Jeff Dietert wrote Friday. “Our view is
that all nations, aside from Saudi Arabia, are essentially producing at
max capacity anyway.”
July futures for benchmark Brent crude oil UK:LCON3 -0.36% on Monday
fell 16 cents, or 0.2%, to $100.23 a barrel. Brent ended May with a loss
of 1.6%.
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